Ex-Australia premium hard coking coal (PHCC) prices have remained under pressure from weak demand though activity has improved and one deal has even been signed at a higher level. In particular, a contract for 75,000 mt of low-volatile Peak Downs PHCC has been signed at $216.58/mt FOB for September laycan, while the previous price assessment had been at $215/mt FOB. But market sources do not consider this to be an increase and still think that major buyers are trying to get lower levels. In particular, another deal for 75,000 mt of mid-volatile Moranbah North PHCC has been done at $207/mt FOB, also for September laycan.
The first cargo is said to be for the Chinese market, while the destination of the other one has remained unconfirmed. Market sources said that higher demand from China may support prices at the current level, but a rebound will be difficult to achieve as Indian mills are still reluctant to buy and are waiting for $200-205/mt FOB.
The SteelOrbis reference price for PHCC has settled at $212/mt FOB, down by $3/mt from August 5.
